Chapter I
1
INTRODUCTION Fmcg COCA-COLA, the product that has been given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. COCA-COLA Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain wholesalers. The company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and notready-to-drink powder products. In addition to this, it also produces and markets sports drink, tea and coffee. The COCA-COLA Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the COCA-COLA system has successfully applied a simple formula on a global scale:” provide a moment of refreshment for a small amount of money-a billion times a day”. The COCA-COLA Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the company. This unique worldwide system has made the COCA-COLA Company the world’s premier soft-drink enterprises. For more than 115 years, COCA-COLA has created a special moment of pleasure for hundreds of millions of people every day. The company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this company jointly take responsibility to ensure compliance with the framework of policies and protect the company’s assets and resources whilst limiting business risks.
2
COMPANY PROFILE ABOUT THE COMPANY COCA-COLA was the leading soft drink brand in India until 1997, when it left rather than reveals its formula to the Government and reduces its equity stake as required under the foreign regulation Act (FERA) which governed the operations of foreign companies in India. COCA-COLA reentered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with Parle group gave the company instant ownership of the top soft drink brands of the nation. With access to 53 of Parle’s plants and a well set bottling network, an excellent base for rapid introduction of the company’s international brands was formed. The COCA-COLA company acquired soft drink brands like Thumps-up, Gold spot, Limca, Mazza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of COCA-COLA in 1993.Thus these products became a part of range of products of the COCA-COLA company. In the new liberalized and deregulated environment in 1993, COCA-COLA made its re-entry into India through its 100% owned subsidiary, HCCBPL , the Indian bottling arm of the COCA-COLA company. However this was based on numerous commitments and stipulations which the company agreed to implement in due course. On such major commitment was that, the Hindustan COCA-COLA Holdings would invest $5 billion in India from 2012 to 2020 to capture the Indian market. COCA-COLA is made up of 7000 local employees, 500 managers, over 60 manufacturing location, 27 companies owned bottling operation (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 contract packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 15, 00,000 retail outlets and 15000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the company. “Think local, act local”, was the mantra that COCA-COLA follows, with punch lines like “Life has to aisi” for the urban India and “Thanda matlab COCA-COLA” for the Rural India. The resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India between 2011 and 2012, the per capita consumption of cold drinks doubled due to the launch of the new packaging of the 200 ml returnable glass bottles which were made available at price
3
of Rs.10 per bottle. This new market accounted for over 80% of India’s new COCA-COLA drinkers. At COCA-COLA, they have a long standing belief that everyone who touches their business should benefit, thereby including them to upload these values, enabling the company to achieve success, recognition and loyalty worldwide. Past and Present 1894 .A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called COCA-COLA to sell using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the company. Candler thanked him but took no action. One of his nephew’s already had urged that COCA-COLA be bottled, but Candler focused on fountain sales. 1899 . The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling COCA-COLA. In a meeting with Candler, Benjamin F.Thomas and Joseph B. Whitehead obtained exclusive rights to bottle COCA-COLA across most of the United States (specifically excluding Vicksburg) for the sum of one Dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909…. Rapid Growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality by 1909, nearly 400 COCA-COLA bottling plants were operating. Most of them family-owned business. Some were open only during hotweather months. 1916 Birth of the contour bottle Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark!
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1920s … Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and 30s … International expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. 1940s … Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 1950s … Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type the traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960s … New brands introduced Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand Coca-Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970s and 80s … Consolidation to serve customers As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international
5
customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990s … New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century … The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.
Hindustan COCA-COLA Beverage Pvt. Ltd, Khordha Plant Company Overview:Hindustan COCA-COLA Beverage Pvt. Ltd. Khordha. It is one of the bottling plants of “COCA-COLA “under the Khordha plant there is another bottling plant in Rourkela, where only RGB production happens. HCCBPL, Khordha plant was established in the year 2000 under the authority of COCA-COLA, India. This plant is the 3rd largest plant after Ahmadabad and Rurki in term of production of finished goods. The production plant is situated in Khordha Industrial Estate, where the production and distribution work are done. Both Odisha and Jharkhand zone come under this region. Jharkhand is fully depending on Khordha plant because no production plant is there. So from Khordha plant, goods are sent to distributor in two ways, one is from directly from its plant and another is through its Depot. Because to the long distance route they are sending to their depot. Mainly Khordha plant has 6 locations for Odisha region for distribution and production and 4 locations for Jharkhand for only distribution.
6
In HCCBPL, Khordha there are 5 production lines which are presently operating. These are 1. Krones 600 BPM 2. MZ RGB 600 BPM 3. CSD 600 BPM 4. PET 140 BPM 5. WTR 75 BPM Proposed expansion plan is about the inventory management of all these which is the subject of my study. These are the list of manufacturing plant and depot of Khordha division:ODISHA F1- Khordha: - In this plant production as well as distribution of finished goods to distributors does. F2- Rourkela (Direct Depto): - It is one of the depots of HCCBPL, Khordha where goods are directly distributed by the company to the retailer. F3- Rourkela (Indirect Depto):- From here goods are sending to the distributor point. F4- Mancheswar (Direct Depto):- From here goods are sending from the F1 plant and distributed to the retailer. F5- Bhawanipatana: - This is same like all indirect depots, goods are sending from Khordha plant to here and from there goods are sending to the distributor point. F7- (Rourkela CO-pack):- It is one of the RGB bottling plants of HCCBPL, Khordha. Here production happens and finished goods are sending to the F2 and F3 location. JHARKHAND X4- Jamshedpur: - From the F1 location goods are send here and dispatch to the distributor. X6- Deogarh: - This is also same as X4 depot. X8- Ranchi (Direct Depto):- Goods are sending from F1 location to here and distributed to directly retailer. X9- Ranchi (Indirect Depto):- Goods are sending from F1 location to here and distributed to distributor.
7
Products
8
3C Report Company Profile: The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups , which is headquartered in Atlanta, Georgia..[2] The company is best known for its flagship
product Coca-Cola
invented
in
1886
by
pharmacist John
Stith
Pemberton in Columbus, Georgia.[3] The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 – March 12, 1929), who incorporated The CocaCola Company in 1892. The company operates a franchise distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. Its stock is listed on the NYSE and is part of DJIA S&P 500 index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. As of 2015, its chairman and CEO is Muhtar Kent.
The Customer: At Coca-Cola , customers are at the heart of coca-cola. Customer preference is a core value of the business. This means building true partnerships that create sustainable value and profitable growth for the business and the customers across all key channels. By finding new ways to win together in the marketplace, coca-cola aim to be the preferred supplier to all of the customers.coca-cola target to the whole crowed.its taget to the rich to the poor.its not only adopted by rich it also reach to the pood with its small size bottle. Mass generation adopt coca cola.
9
Company Profile: The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups , which is headquartered in Atlanta, Georgia..[2] The company is best known for its
flagship
product Coca-Cola
invented
in
1886
by
pharmacist John
Stith
Pemberton in Columbus, Georgia.[3] The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 – March 12, 1929), who incorporated The Coca-Cola Company in 1892. The company operates a franchise distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The CocaCola Company owns its anchor bottler in North America, Coca-Cola Refreshments. Its stock is listed on the NYSE and is part of DJIA S&P 500 index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. As of 2015, its chairman and CEO is Muhtar Kent. products.
The Customer: At Coca-Cola , customers are at the heart of coca-cola. Customer preference is a core value of the business. This means building true partnerships that create sustainable value and profitable growth for the business and the customers across all key channels. By finding new ways to win together in the marketplace, coca-cola aim to be the preferred supplier to all of the customers.coca-cola target to the whole crowed.its taget to the rich to the poor.its not only adopted by rich it also reach to the pood with its small size bottle. Mass generation adopt coca cola. The Competitors: The main compititors of coca-cola are PepsiCO Godrej Beverage Parle Agro Mother dairy Ladakh Foods
10
Gourmet,etc SWOT Analysis: STRENGTH
Brand value 77839 billian
World large beverage company
Strong marketing and advertising
WEAKNESS
Lack of diversification
Negative publicity
OPPORTUNITY
Growth in beverage consumption
Increase bottled water demand
Reduce the price of material production
THREATS
Changing user demand for the competitor drink
Local brand are increase
Increase competition
11
Literature Review
12
CHAPTER II
13
OBJECTIVES OF THE STUDY The present study revolves around the following broad objectives:
To understand the objective of inventory management.
To identify how much inventory of bottles of COCA-COLA is maintained.
SCOPE OF THE STUDY Many companies use inventory system in their production or retail operations. Inventory management provides the foundation to meet customer demands and composes one of the largest assets owned by the company. Companies incorporate inventory system as a way of managing inventory level. Each inventory system falls within a specific scope and experiences certain limitations. Management needs to understand the scope of each in order to choose the best inventory system for the company. The scope of an inventory system considers which needs the inventory system addresses. These include:
Valuing the inventory, measuring the change in inventory and planning for future inventory levels.
The value of the Inventory at the end of each period provides a basis for financial reporting on the balance sheet.
Measuring the change in inventory allows the company to determine the cost of inventory sold during the period.
The inventory level and changes allow the company to plan for future inventory needs.
METHODOLOGY DATA COLLECTION Two types of data are collected, one is primary data and second one is secondary data. The primary data were collected from the Department of finance, COCA-COLA COMPANY. The secondary data were collected from the Annual Report of COCA-COLA COMPANY, its website, etc. PLACE OF STUDY The project study is carried out at the Finance Department of COCA-COLA COMPANY Corporate office Situated at KHORDHA, ORISSA. The study is undertaken as
14
a (MBA) MASTERS IN BUSINESS ADMINISTRATION OF BIJU PATNAIK UNIVERSITY OF TECHNOLOGY, ODISHA in the form of summer placement. PERIOD OF STUDY I have done my project from 20th May 2015 to 6th July 2015 in Khordha plant of Hindustan Coca- Cola Beverages Pvt. Limited. LIMITATIONS There may be limitations to this study because the study duration (summer placement) is very short and it’s not possible to observe every aspect of inventory management and control system practices. 1.
Interest on invested capital.
2.
Physical handling.
3.
Accounting.
4.
Depreciation and determination.
15
Chapter III
16
1. THEORETICAL ANALYSIS Inventory consists of stock of raw materials, work-in-progress, spare pa consumables for production and finished goods for sale. Thus, inventory com includes control over raw materials, spare parts, consumables, partly finished goods, and finished goods. The following are the common techniques of inventory control: 1.
Determination of various levels of materials.
2.
Economic Order Quantity.
3.
ABC Analysis.
4.
Perpetual Inventory System.
1.
Determination of various Levels of Materials : The store-keeper plays an important role in deciding upon the various levels materials.
In order to ensure that the optimum quantity of materials is purchased stocked neither less nor more, the store keeper applies scientific techniques of materials management. Fixing of certain levels for each item of materials in one of techniques. These levels are not permanent but require revision according to the change in the factors which determine these levels. The following levels are generally fixed. (a)
Re-order Level.
(b)
Maximum Level.
(c)
Minimum Level.
(d)
Average Level.
(e)
Danger Level
(a).
Re-order Level : This level is that level of material at which it is necessary to initiate purchase
requisition for fresh supplies. This is normally the point lying between the maximum and the minimum levels. Fresh orders must be placed before the actual stocks touch the minimum level. This level is fixed in such a manner that the quantity of materials represented by the difference between the re-order level and the minimum level will be sufficient to meet the requirement of production till such time as the order materializes and materials are delivered.
17
(b). Maximum Level: The maximum level is that level of stock which can be held at any time. In other words, it is the level beyond which stock should not be maintained. The purpose is to avoid over-stocking and thereby using working capital in a proper way.
(c) Minimum Level: This is the level below which the stock of an item should not fall. This is known as safety or buffer stock. An enterprise must maintain minimum quantity of stock so that the production is not hampered due to non-availability of materials
(d)
Average Level: Average level can be calculated by applying the following formula: Maximum level + Minimum Level Average Level = …………………………….. Or Average level = Minimum level + of Re-order Quantity.
(e)
Danger Level: Usually stack should not be lower than the minimum level. But if for any reason, stock
comes down below the minimum level, it is called danger level. When the stock reaches danger level, it is necessary to take urgent action on the part of the management for immediate replenishment of stock to prevent stock-out situation. The danger level can be calculated by applying the following formula: Danger Level = Average consumption x Maximum Re-order period for emergency purchases. 2.
Economic Order Quantity (EOQ): The economic order quantity, known as EOC, represents the most favorable quantity
to be ordered each time fresh orders are placed. The quantity to be ordered is called economic order quantity because the purchase of this size of material is most economical. It is helpful to determine in advance as to how much should one buy when the stock level reaches the reorder level. If large quantities arc purchased, the carrying costs would be large.
18
On the other hand, if small quantities are purchased at frequent intervals she ordering costs would be high. The economic order quantity is fixed at such a level as to minimize the cost of ordering and carrying the stock. It is the size of the order which produces the lowest cost of material ordered. On the other hand, if orders are placed for small quantities, the ordering cost is more but the carrying cost would be less. Thus the economic order quantity is determined at a point when the ordering costs and the carrying costs are equal. Only at this stage the total of ordering cost and carrying cost is minimum. 3.
ABC Analysis: This technique of inventory control is also known as always Better Control technique.
ABC analysis is an analytical method of control which aims at concentrating effects on those areas where attention is needed most. According to this approach to inventory control high value items are more closely controlled than low value items. Each item of inventory is given A, B or C denomination depending upon the amount spent for that particular item. “:A” or the highest value items should be under the tight control and under responsibility of the most experienced personnel, while “C” or the lowest value may be under simple physical control. It may also be clear with the help of the following examples: “A” Category – 5% to 10% of the items represent 70% to 75% of the money value. “B” Category – 15% to 20% of the items represent 15% to 20% of the money. “C” Category – The remaining number of the items represent 5% to 10% of the money value. 4. Perpetual Inventory System: Another method of inventory control is the maintenance of inventory control on a continuous basis. After the material are received into the stores, the storekeeper will arrange for the storing of each item in the allotted rack, bin, shelf or other receptacles and attach a card to each bin for the purpose of making entries there in relating to the receipt, issues and balance. The bin card or the locker card, this becomes a perpetual inventory record for each item of
19
stores. Thus the perpetual inventory is a method of recording store balance after every receipt and issue to facilitate regular checking and to obviate closing down for stock locking. Under this method of stocktaking, the verification of the whole of the stock and its valuation are accomplished only once at the close of the financial year and difference in stock is adjusted only once. Nevertheless, the periodic inventory has its own disadvantage. In the first place, it becomes necessary to close down the factory on the day of stock taking. Secondly, discrepancies in stock cannot be corrected by an executive action immediately as and when they occur. Thirdly, since all the items are checked only once in a particular day, a surprise verification will not be possible. Lastly, reason for the discrepancies cannot be found out because of the long interval between two consecutive verifications. The advantages of a continuous stocktaking where perpetual inventory records are maintained may thus be summarized as follows: (i)
The elaborate and costly work involved in periodic stock taking can be avoided.
(ii)
The stock verification can be done without the necessity of closing down the factory.
(iii)
The preparation of interim financial statement becomes possible.
(iv)
Discrepancies are easily located and corrected immediately.
(v)
It ensures a reliable check on the stores.
(vi)
It exercises a moral influence on the stores staff.
(vii)
Fast and slow moving items can be distinguished and the fixation of proper stock levels prevents not only over-stocking, but under-stocking also.
(viii) A perpetual inventory record of the nature of the bin cards enables the storekeeper to keep an eye on the stock levels and replenish the stock of every item whenever the limit falls to the recorded level. (ix)
It provides reliable information to the management of the number of units and the value of every item of stores.
(x)
It ensures secrecy of the items that are verified.
Pricing of Raw Materials: When issues are made out of various lots purchased at varying prices, the problem arises to which of the receipt price should be adopted for valuing the materials requisitions. 1.
First in first out :
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Materials received first will be issued first. The price of the earliest consignment if taken first and when that consignment is exhausted the price of the next consignment is adopted and so on. This method is suitable in times of falling prices, because the material charge to production will be high while the replacement cost of materials will be low. 2.
Last in first out : Materials received last will be issued first. The price of the last consignment is taken first and when that consignment is exhausted the price of the second last consignment is adopted and so on. In timing of rising prices this method will show a charge to production, which is closely related to current price levels provided that the last purchase is made recently.
3.
Weighted average cost method : Under this method material issued is priced at the weighted average cost of material in stock. WAC= Value of material in stock / quantity in stock.
4.
Standard price method : Under this method a standard price is predetermined. The price of issues predetermined for a stated period taken into account all the factors affecting price such as anticipated market trends, transportation charges, and normal quantity of purchase. Standard prices are determined for each material and material requisitions are priced at standard irrespective of the actual purchase price. Any difference between the standard and actual price results in materials price variance.
5.
Current Price : According to this method, material issued is priced at their replacement or realizable price at the time of issue. So the cost at which identical material could be purchased from the market should be ascertained and used for valuing material issues.
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DATA ANALYSIS 1. How inventory control works in Coca-Cola? a) By efficiently tracking qualities across storage location. b) By common application c) By popular transaction d) By improve accuracy
Sl. No.
Opinions
No. of Respondents
Percentage
1
a
12
60
2
b
03
15
3
c
03
15
4
d
02
10
Total
20
100
How inventory control works in Coca-Cola 10% 15%
15%
60%
a
b
c
d
Interpretation: From the above table it shows that inventory controls works in Coca Cola Khordha by efficiently tracking qualities across storage location is 60%, by common application 15%, by popular transaction 15% and by improve accuracy by 10%.
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2. Are policies and procedures current in waiting and properly approved in Coca-Cola?
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
15
75
2
No
05
25
3
Can’t Say
00
00
Total
20
100
Policies and procedures current in waiting and properly approved in Coca-Cola 0% 25%
Yes No Can't Say 75%
Interpretation: From the above table it shows that 75% respondents are positive that policies and procedures current in waiting and properly approved in Coca Cola Plant compare to only 25% are negative respondents.
23
3. Do the Inventory department compare qualities received against receiving reports etc. in Coca-Cola? Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
15
75
2
No
05
25
3
Can’t Say
00
00
Total
20
100
Qualities received against receiving reports etc. in Coca-Cola 0% 25%
Yes No 75%
Can't Say
Interpretation: From the above table it shows that 75% respondents are positive that inventory department compare qualities received against receiving reports etc. in Cola-Cola whereas compare to only 25% respondents are negative answers.
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4. Are inventory records reconciled to advantage reports on a regular basis in Coca-Cola? 5.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
19
95
2
No
01
05
3
Can’t Say
00
00
Total
20
100
Inventory records reconciled to advantage reports on a regular basis in Coca-Cola 0% 5%
Yes No Can't Say 95%
Interpretation: From the above table it shows that 95% respondents state that inventory records reconciled to advantage reports on a regular basis in Coca Cola whereas compare to only 5% respondents are negative answers.
25
5. Does management review the reconciliation of physical inventory counts to the inventory records? 6.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
17
85
2
No
02
10
3
Can’t Say
01
05
Total
20
100
Management review the reconciliation of physical inventory counts to the inventory records
10%
5%
Yes No Can't Say 85%
Interpretation: From the above table it shows that 85% respondents are satisfied that management review the reconciliation of physical inventory counts to the inventory records and 10% are negative answers whereas 5% can’t say anything.
26
6. Is a perpetual inventory system (including quantities and value) in use as to all major classes of inventory? 6.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
19
95
2
No
01
05
3
Can’t Say
00
00
Total
20
100
Perpetual inventory system (including quantities and value) in use as to all major classes of inventory 0% 5%
Yes No Can't Say 95%
Interpretation: From the above table it shows that perpetual inventory system (including quantities and value) in use as to all major classes of inventory is 95% whereas compare to only 5% negative answers.
27
7. Are perpetual inventory records update promptly? 7.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
18
90
2
No
02
10
3
Can’t Say
00
00
Total
20
100
Inventory records reconciled to advantage reports on a regular basis in Coca-Cola 0% 10%
Yes No Can't Say 90%
Interpretation:
28
8. Does internal control appear adequate for the inventory system overall? 8.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
16
80
2
No
04
20
3
Can’t Say
00
00
Total
20
100
Internal control appear adequate for the inventory system overall 0% 20%
Yes No Can't Say 80%
Interpretation:
29
9. Does your Organization have a written mission statement? 9.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
17
85
2
No
03
15
3
Can’t Say
00
00
Total
20
100
Organization have a written mission statement 0% 15%
Yes No Can't Say 85%
Interpretation:
30
10. Do these individuals know how to access the people soft on-line-financial folders that are made available monthly? 11.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
19
95
2
No
01
05
3
Can’t Say
00
00
Total
20
100
Individuals know how to access the people soft on-linefinancial folders 0% 5%
Yes No Can't Say 95%
Interpretation:
31
14. Does your department prepare an annual financial report? Are managers hold accountable for financial performance? 15.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
18
90
2
No
02
10
3
Can’t Say
00
00
Total
20
100
Department prepare an annual financial report 0% 10%
Yes No Can't Say 90%
Interpretation:
32
15. Has the department established cross-training or contingency plans for significant changes in personal? 16.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
14
70
2
No
05
25
3
Can’t Say
01
05
Total
20
100
Department established cross-training or contingency plans for significant changes in personal
5%
Yes
25%
No Can't Say 70%
Interpretation:
33
16. Has your department posted information on how to report suspected instances of scientific misconduct? 17.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
18
90
2
No
02
10
3
Can’t Say
00
00
Total
20
100
Department posted information on how to report suspected instances of scientific misconduct 0% 10%
Yes No Can't Say 90%
Interpretation:
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17. Does your department maintain any confidential employee/student and human subject research records that requires special treatment for privacy protection? 18.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
20
100
2
No
00
00
3
Can’t Say
00
00
Total
20
100
Department maintain any confidential employee/student and human subject research records 0%
Yes No Can't Say 100%
Interpretation:
35
18. Have employees been trained for workplace safety by the Environmental Health & safety officer (EH&C) to comply with the appropriate regular for requirements for their job responsibilities? 19.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
17
85
2
No
03
15
3
Can’t Say
00
00
Total
20
100
Employees been trained for workplace safety by the Environmental Health & safety officer (EH&C) 0% 15%
Yes No Can't Say 85%
Interpretation:
36
19. Do your believe that department personal are sufficiently informed about important federal and state laws and regulations that govern activities performed within your department? 20.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
14
70
2
No
06
30
3
Can’t Say
00
00
Total
20
100
Department personal are sufficiently informed about important federal and state laws and regulations 0%
Yes
30%
No Can't Say 70%
Interpretation:
37
20. Are you satisfied the entire inventory process and control system of Coca-Cola? 21.
Sl. No.
Opinions
No. of Respondents
Percentage
1
Yes
20
100
2
No
00
00
3
Can’t Say
00
00
Total
20
100
Satisfied the entire inventory process and control system of Coca-Cola 0%
Yes No Can't Say 100%
Interpretation:
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CAHPTER
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FINDINGS Improve data accuracy Perfect inventory levels record is maintained. The best way to do that is by using mobile wireless devices and product barcodes. Scanning barcodes is faster and more accurate than typing product information by hand. the inventory management solution choosen uses mobile barcode scanner so it is not tied to a desktop computer. it should be able to update the inventory records from anywhere. Increase efficiency One of the main purposes of using inventory management software is to save time and make your company more efficient. With the right inventory software, your company should see a decrease in the amount of time it takes to place orders, receive products and pick. Then pack it and ship products to customer.
In COCA-COLA company there are various products like in Cola section Thumps up, Sprite, Mazza, Limca, Fanta, Minute Maid and in water section only one product is Kineley.
They use QAD(Quality Archery Design) software to maintain inventory management system.
They also maintain GRN(Goods Received Note) and SRN(Sells Received Note).
Very soon they sifted there new software SAP.
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CONCLUSIONS Company which does not have in management system will get problem when check. There are very much important to produce Finished Goods (FG) at a right time because if the Finished Goods(FG) are not produce at a right time then there will be a shortage of stock at retailer shop. Then the retailer doesn’t satisfy to your service. Then the profit showing very less. It’s totally depends upon the management system. If the management teams don’t give the raw material at a perfect time then the production teams don’t produce the Finished Goods (FG) at the right time. There is a linkage between the Finished Goods (FG), demand and inventories of Raw material Packaging Material (RMPM) and spares and other which required for day to day smooth operation of a organization. They all are related to each other. If there is no Raw Material (RM) then there is no Finished Goods (FG). If the machines are not in good conditions then the production will be stop. Then the Finished Goods (FG) are not produce at the right time. Now the company use QAD software but very soon sifted to the SAP software because to improve their inventory system. It also enhances the strength of the company. I found the management should be very much perfect and the teams do his work in a proper way. My heart full gratitude to the staff and employees of Hindustan Coca-Cola Beverages Pvt. Ltd (HCCBPL) to co-operate with me throughout my internship period.
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SUGGESTIONS Inventory management system is the best choice for replacing the current system. The current system which is used in cola system by using inventory management system transaction and any other thing will run more efficient and effective with any data loss. Form run group point of view inventory management system should be implemented not for this but also the others and e-scan will be used in office fact deal with warehousing like cargo, container, factory etc. Inventory management system will be better if it improved with programmed. That deal with website, so the customer by home can communicate with the clerk and accountant of the shop and ask products available then, it should deal transaction delivery to home. The use of inventory management system, it suggest they need to be trainee well in order to maintain wrong input of data may be trouble in daily report. If there are new updates of inventory management system we suggest that each office or organization always follow the update show the current system will not let behind.
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ANNEXURE
Questionnaire INVENTORY MANAGEEMNT & CONTROL SYSTEM Respected Sir/Madam, I am Sonali Ray doing my project work on the topic “Inventory Management & Control System in Coca Cola” under the guidance of Mr. B.N. Mohapatra, G.M. (HR) your impartial opinions shall be kept confidential. Therefore kindly cooperate with me in this regard.
1. How inventory control works in Coca-Cola? a) By efficiently tracking qualities across storage location. b) By common application c) By popular transaction d) By improve accuracy 2) Are Inventory policies and procedures current in waiting and properly approved in Coca-Cola? Ans. (a) Yes 3)
(b) No
(c) Can’t Say
Do the Inventory department compare qualities received against receiving reports etc. in Coca-Cola?
Ans. (a) Yes 4)
(b) No
(c) Can’t Say
Are inventory records reconciled to advantage reports on a regular basis in CocaCola?
Ans. (a) Yes 5)
(b) No
(c) Can’t Say
Does management review the reconciliation of physical inventory counts to the inventory records?
Ans. (a) Yes 6)
(b) No
(c) Can’t Say
Is a perpetual inventory system (including quantities and value) in use as to all major classes of inventory?
7)
Are perpetual inventory records update promptly?
Ans. (a) Yes
(b) No
(c) Can’t Say
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8)
Does internal control appear adequate for the inventory system overall?
Ans. (a) Yes 9)
(b) No
(c) Can’t Say
Does your department prepare an annual financial report? Are managers hold accountable for financial performance?
Ans. (a) Yes
(b) No
(c) Can’t Say
10) Has the department established cross-training or contingency plans for significant changes in personal? Ans. (a) Yes
(b) No
(c) Can’t Say
11) Does your department maintain any confidential employee/student and human subject research records that requires special treatment for privacy protection? Ans. (a) Yes 12)
(b) No
(c) Can’t Say
Have employees been trained for workplace safety by the Environmental Health & safety officer (EH&C) to comply with the appropriate regular for requirements for their job responsibilities?
Ans. (a) Yes
(b) No
(c) Can’t Say
13) Do you believe that department personal are sufficiently informed about important federal and state laws and regulations that govern activities performed within your department? Ans. (a) Yes
(b) No
(c) Can’t Say
14) Are the internal employee co-ordinate you for doing your survey?60/30/10 Ans. (a) Yes
(b) No
(c) Can’t Say
15) Are you satisfied the entire inventory process and control system of Coca-Cola? 80/10/10 Ans. (a) Yes
(b) No
(c) Can’t Say Thanking you.
Sonali Ray Deptt. of MBA
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